With the increasing number of hurricanes causing damage to condominiums, many associations are falling prey to poorly drafted construction contracts and/or unlicensed contractors regarding remediation, masonry, and other restoration work in common areas.

At the law firm of Kaba & Associates, P. A., we are dedicated to ensuring that your Home Owner Association or Condominium Association does not enter into poorly written construction contracts or become the victim of an unscrupulous contractor.

While it is important that any contract signed by an association is first reviewed and revised by it attorney, there are several key provisions which should be included in any construction contract, and in particular, pitfalls to avoid.

Ideally, an engineer and/or architect will be retained for any substantial construction and/or renovation work. The Condominium Act and the association’s condominium documents should be reviewed regarding voting requirements and other considerations concerning the association’s expenditures.

Typically, proposals used by contractors contain one or two pages and very few essential terms. Some of the essential terms which should be recommended by an association’s attorney to include in an addendum, include, but are not necessarily limited to the following:

- a prevailing party attorney fee and cost provision
- a right to file suit, if necessary in a court of law, and not binding arbitration
- language that states no subcontractors shall perform the work without the prior written consent of the association
- language that states no add-ons or additional work be performed without the prior written consent of the association and/or its representative
- language that states the contractor shall not assign the contract to other parties
- commencement and completion dates
- a liquidated damages provision for delays and possibly a similar “early completion bonus” clause (both of which must be carefully drafted to avoid being deemed an unenforceable “penalty” clause)
- a requirement for a sufficient amount of professional liability, General Comprehensive Liability (naming the association as the “certificate holder”), and Workman’s Compensation insurance
- a requirement that any litigation shall be filed within the county and state of the association
performance bonds and material and payment bonds should be required to ensure performance and payment to sub-contractors and suppliers
- language that states final payment shall be made following the passing of a final inspection for the work

In addition, it is worthwhile to spend a few minutes confirming on-line public information, including, but not necessarily limited to the following:

- corporate status of the contractor with the Division of Corporations
- licensure status for the scope of the work to be performed
- a general Internet search, which will often reveal websites used by the contractor, organizations to which the contractor belongs, trade associations and/or other information regarding the contractor or engineer

In some instances, it may prove worthwhile to conduct a quick search on the Clerk of Court website in the county of the association to confirm whether the contractor has previously been sued.

The bottom line is you need to perform due diligence when it comes to entering into construction contracts and agreements.

Contact Kaba & Associates, P.A., for sound advice and thorough review of any construction-related contracts. We'll make sure the proper details are addressed and you have proper legal protection.

We assist both domestic (United States-based) and international investors looking to invest in residential and commercial real estate in Florida.

We assist clients in locating properties, arranging for financing, advising on how to fulfill the requirements of the Foreign Investment Real Property Tax Act (FIRPTA), and arranging for "safe harbors" for funds through 1031 exchange transactions.

Kaba & Associates, P.A. understands the commercial real estate business inside and out. The foundation of our firm’s practice has been the representation of institutional and individual land interests. We have experience in every facet of the commercial real estate law practice, including:

Zoning regulations
Land Use Planning
Land acquisition
Financing
Home builder and Commercial development
Construction contracts
Mortgage closing
Eminent domain
Environmental
Sales
Evictions
Lease agreements
Litigation
Retail
1031 exchanges

Our law firm handles all facets of development, investment, purchase, and sale of commercial Real Estate. We have a full-service Miami commercial Real Estate Law Firm, well established and experienced in legal matters such as the following:

Location of commercial real estate available for investors
Commercial real estate litigation
Commercial real estate development
Partnership disputes involving commercial real estate
Commercial real estate foreclosures for owners who are unable to meet financial obligations
Visa applications for international commercial real estate investors

The success of a Commercial Real Estate deal can hinge on a detailed knowledge of a given market. There is sense reason in making an investment decision without the best investment information available. We stay on top of all of the latest developments in the Florida commercial real estate market.

Despite the best intentions of Boards of Directors it is almost inevitable that the association will eventually have a dispute with contractors, home owners, tenants and even their management company. When a dispute arises that requires the attention of a lawyer, contact the skilled professionals at Kaba & Associates, P. A.

Our law office have litigated almost every type of association case imaginable, whether in the courts or in arbitration.

The right of an association to prohibit pets
Lawsuits against contractors
Lawsuits against unit owners for unpaid assessments
Arbitration actions for parking violations
Lawsuits regarding unauthorized modifications to the common elements
Lawsuits regarding nuisances by tenants or unit owners
Lawsuits against the developer
Arbitration actions regarding occupancy in a 55 and over community
Lawsuits regarding unauthorized rejections of buyers or renters
Prosecution or defense of recall matters
Litigation of breach of fiduciary claims
Opposition to neighboring development
Alleged violations of local ordinances
Restraining orders against unit owners who threaten violence
 

Our first choice in any dispute is to attempt to settle the matter without the need for lengthy arbitration or court litigation.

If no agreement can be reached, we are fully prepared and extremely capable of arguing your case in court or in arbitration.

Whether in state court, federal court or in arbitration, we skilled have the knowledge and experience to take your case the full distance if necessary.

Since your condominium or homeowners' association is a Florida corporation, it is required by law to obtain legal counsel when either pursuing or defending a cause of action in a court of law. Rest assured that by choosing Kaba & Associates, P.A., your association will be represented professionally and aggressively by an experienced attorney and will do everything possible to obtain a positive result.

Are you a real estate investor or property owner interested in utilizing the 1031 exchange rule in your transactions?

The 1031 exchange rule is not a tax loophole. It is a section of the Internal Revenue Code, written by Congress, to allow anyone who meets all the requirements to sell their property and defer paying taxes on the gain. The 1031 Exchange Rule may save you thousands in capital gains taxes.

A 1031 exchange makes it possible for investors to sell and buy property of like kind while deferring tax consequences. This transaction is authorized by section 1031 of the IRS code and offers investors a reliable strategy for the protection of their real estate assets. A successful 1031 exchange allows the investor to reinvest 100% of the equity from the sale of a property into the purchase of a preferred replacement property without recognizing any gain. This type of property sale and reinvestment can either be done through a simultaneous or delayed 1031 exchange. In most cases a 1031 exchange is done as three-party delayed exchange also known as a "Starker Exchange" in which an intermediary ensures a reciprocal transfer of the properties and provides a "safe harbor" against the actual receipt of exchange funds.

It is extremely important that this process be done correctly, otherwise, a taxable event may occur.

1031 exchanges provide real estate owners with a range of opportunities to meet personal investment objectives including increased leverage, improved cash flow, diversification, reduction of management obligations, geographic relocation and/or consolidation. The tax dollars saved by an exchange may be maximized to increase an investor's overall net worth. Strategic Tax and Wealth Planning can further maximize the value of current and future assets.

Always consult with a Real Estate Lawyer to properly structure the 1031 exchange rule transaction. Contact us we will help you!

Our law firm is a full-service Miami investment law firm experienced and knowledgeable in all legal requirements for foreign investors in Florida, including the following:

Immigration visas for corporate transferees
Legal services for executives foreign corporations doing business in Florida
E-2 treaty investor visas
Visa applications

Our Law Firm is a one-stop shop for international business executives and investors, capable of assisting with all aspects of foreign investment and international business in

Florida, such as the following:

- Locating available properties for international real estate investors

- Assistance finding and obtaining financing for foreign investors

- Professional networking services for foreign investors in need of contacts with architects, designers, property sellers, and entrepreneurs ready to partner with international investor

If you are a foreign national interested in investing in the United States, we welcome your call to discuss opportunities and legal requirements, including FIRPTA (Foreign Investment Real Property Tax Act) regulations.

We are a passionate Florida Real Estate, business, investment, and E-2 visa Law Office serving United States and international investors. We provide focused, results-oriented legal advocacy to American and international businesses and individuals involved in all aspects of the Real Estate Investment.

We provide advice on:

real estate investments,
avoiding liability issues,
negotiation and drafting of contracts,
governmental interfacing,
compliance with short-term or long-term visa and immigration requirements.

To schedule a consultation with us, an experienced and well-recognized Miami area investment lawyer, contact us at Kaba & Associates, P.A.